Fed officials clash over efforts to aid economy

By JEANNINE AVERSA AP Economics Writer

WASHINGTON (AP) - Divisions within the Federal Reserve over how to pump up the economy and lower unemployment came into sharper view Wednesday.

Three Fed officials squared off in competing speeches over how much help would come from one likely next step - buying more government debt.

Narayana Kocherlakota, president of the Federal Reserve Bank of Minneapolis, argues that a fresh round of government-debt buying may not help the economy all that much. Charles Plosser, president of the Federal Reserve Bank of Philadelphia, makes a similar point. But, Eric Rosengren, president of the Federal Reserve Bank of Boston, stresses that Fed policymakers must do what they can to bring some more relief.